Franklin Resources Reports Preliminary Fourth Quarter and Fiscal Year 2025 Results

Franklin Resources, Inc. (the “Company”) [NYSE: BEN] today announced preliminary financial results for its fourth quarter and fiscal year ended September 30, 2025.

For the quarter, net income was $117.6 million, or $0.21 per diluted share, compared to $92.3 million, or $0.15 per diluted share, in the previous quarter and a net loss of $84.7 million, or $0.19 per diluted share, in the prior-year quarter. For the full fiscal year, net income totaled $524.9 million, or $0.91 per diluted share, up from $464.8 million, or $0.85 per diluted share, in fiscal 2024.

Operating income for the fourth quarter was $85.4 million, compared to $154.1 million in the previous quarter and an operating loss of $150.7 million in the prior year.

Adjusted Results (Non-GAAP)

On an adjusted basis, net income for the quarter was $357.5 million, with adjusted diluted earnings per share (EPS) of $0.67, compared to $263.4 million and $0.49 respectively in the previous quarter, and $315.2 million and $0.59 in the same period last year.

For the fiscal year, adjusted net income was $1,195.8 million, or $2.22 per diluted share, versus $1,276.7 million, or $2.39 per diluted share, in fiscal 2024.

Adjusted operating income for the quarter rose to $472.4 million, compared to $377.8 million in the previous quarter and $451.6 million in the prior year.

CEO Commentary

“Franklin Templeton delivered solid fourth quarter and full-year 2025 results, reflecting continued growth and diversification across our global investment platform,” said Jenny Johnson, President and Chief Executive Officer of Franklin Resources, Inc.

“Our momentum continued through the fourth quarter, with progress across key growth areas. Long-term inflows reached $84.6 billion, up 12% from the prior quarter, while long-term net outflows totaled $11.9 billion. Excluding Western Asset Management, we achieved $11.4 billion in net inflows, marking our eighth consecutive quarter of positive flows on this basis. Our institutional pipeline remains strong, with $20.4 billion in won-but-unfunded mandates following record fundings in the quarter.”

Johnson added, “Throughout fiscal 2025, we executed on our long-term priorities—driving growth across public and private markets and expanding our leadership in multi-asset and alternative strategies. Excluding Western Asset, long-term net inflows totaled $44.5 billion, including $25.7 billion in multi-asset and alternatives. Retail SMAs, ETFs, and Canvas® each achieved record net inflows and double-digit AUM growth rates. Our alternative assets under management reached a record $270 billion, supported by the acquisition of Apera Asset Management and $26.2 billion in fundraising.”

She continued, “We maintained expense discipline while investing for the future, supported by a strong balance sheet with $6.7 billion in cash and investments. We returned $930 million to shareholders through dividends and share repurchases during the year. As we move into fiscal 2026, Franklin Templeton is well positioned to capture long-term opportunities across public and private markets, leveraging our global scale, investment expertise, and client-first culture.”

Assets Under Management (AUM)

Total AUM stood at $1.66 trillion as of September 30, 2025, an increase of $49.4 billion during the quarter. This growth was driven by $54.1 billion in positive market change, distributions, and other factors, and $7.2 billion in cash management inflows, partially offset by $11.9 billion in long-term net outflows, including $23.3 billion from Western Asset.

For the fiscal year, AUM decreased by $17.4 billion, reflecting $97.4 billion in long-term net outflows (including $141.9 billion from Western Asset), $0.2 billion from fund dispositions, offset by $67.6 billion in market appreciation and $12.6 billion in cash management inflows.

Balance Sheet and Capital Management

As of September 30, 2025, the Company held $5.5 billion in cash and cash equivalents, and $6.7 billion when including direct investments in consolidated investment products (CIPs). Stockholders’ equity totaled $13.0 billion, with 521.0 million shares outstanding. During the quarter, the Company repurchased 2.6 million shares of common stock for a total of $67.1 million.

Supplemental Non-GAAP Financial Measures

Franklin Resources provides non-GAAP performance measures—adjusted operating income, adjusted operating margin, adjusted net income, and adjusted diluted earnings per share—as supplemental information to assess performance relative to industry peers. These measures exclude certain non-recurring or non-cash items and should not be considered as substitutes for GAAP results. Reconciliations of GAAP to non-GAAP results are provided in the accompanying schedules.

About Franklin Templeton

Franklin Resources, Inc. [NYSE: BEN] is a global investment management organization with over $1.6 trillion in assets under management as of September 30, 2025. Through its specialist investment managers, Franklin Templeton provides investment solutions spanning public and private markets to clients in over 150 countries.

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